What to Watch in the Week Ahead and on Monday, Oct 5
(The Day Ahead is an email and PDF publication that includes the day's major stories and events, analyses and other features. To receive The Day Ahead, Eikon users can register at . Thomson One users can register at RT/DAY/US. All times in ET/GMT) Earnings season can't come soon enough for investors, who are dealing with slowed economic growth and fecklessness of the Federal Reserve. Next week's slate has just a trickle of quarterly results, and as investors prep for the reporting period they'll be watching to see if markets can hold onto the late Friday rally in stocks after big early-day losses. Bond yields being lower could continue to make banks less attractive and utilities more so, while the expectation the Fed will raise rates - eventually, someday - should keep a steady base of support for the dollar. On Thursday, the U.S. Federal Open Market Committee will publish the minutes of September policy meeting held on Sept. 16-17. Federal Reserve Bank of San Francisco President John Williams speaks on the economic outlook before the Urban Land Institute Fall Meeting, in San Francisco, California on Tuesday before his Thursday's speech on the economic outlook before the Spokane Metropolitan Area Business and Community Leaders Luncheon, in Spokane, Washington. On Thursday, Federal Reserve Bank of St. Louis President James Bullard will give welcome remarks before the Children's Saving Account Symposium hosted by the Federal Reserve Bank of St. Louis, in. St. Louis, Missouri. Separately, Federal Reserve Bank of Minneapolis President Narayana Kocherlakota gives welcome remarks and participates in forum before the Greater Mankato Growth Event, in Mankato, Minnesota the same day. On Friday, Federal Reserve Bank of Atlanta President Dennis Lockhart will speak before the Society of American Business Editors and Writers (SABEW) Fall Conference, in New York. On Thursday, metals company Aloca Inc will report third-quarter earnings amid an environment of low aluminum prices, thanks to a supply glut out of China. Analysts will be most interested in more details of the breakup of the company Alcoa announced on Sept. 28. The split separating its legacy smelting business from its value-added sales to the automotive and aerospace industries has left analysts with questions, including how debt and pension liabilities will be divided up between the two companies. PepsiCo Inc is expected to report its third-quarter sales above analysts' average estimate on Tuesday. Strong sales growth in the company's developing markets, which include China, Africa and Latin America, is expected to make up for weak sales in the United States. PepsiCo had reported quarterly revenue growth in its Americas beverages business - its biggest- for just the second time in nearly four years in the second quarter. Investors will also look out for commentary on the performance of aspartame-free Diet Pepsi brands, which were launched in August in the United States following negative consumer feedback on the artificial sweetener. On Tuesday, the Commerce Department will release the U.S. trade deficit data. The trade gap is expected to have increased to $45.5 billion in September. The Federal Reserve, on Wednesday, will issue the consumer credit figures for August. Meanwhile, the Labor Department issues the import and export prices for September on Friday. Separately, the Commerce Department will release the wholesale inventories for August the same day, which are expected to have remained flat after slipping 0.1 percent in July. Monsanto Co, the world's largest seed company, releases fourth-quarter and year-end results in a report expected to be widely scrutinized by investors and analysts after the company's failed effort to acquire rival Syngenta AG on Wednesday. Tuesday will see Yum! Brands Inc report its third-quarter results and investors will be focused on China as growth in that key market cools for the owner of the KFC and Pizza Hut brands. Teasing out the impact of China's slowing growth could be difficult since Yum is still rebounding from its latest food scare there. On Wednesday, beer maker Constellation Brands is likely to report its second-quarter profit and sales slightly above analysts' average estimates. The company is expected to have had strong sales of its flagship Corona brand, helped by the re-launch of the Corona Extra can with new packaging and introduction of 18 and 24 packs. Investors will be looking out for commentary on the possible Anheuser-Busch-SABMiller mega-deal and on potential acquisitions. Domino's Pizza Inc is expected to report its third-quarter sales above analysts' average estimate on Thursday. The company has been outperforming rivals such as Yum Brands' Pizza Hut and McDonald's in the United States due to digital investments to improve online and mobile ordering. The Republicans in the U.S. House of Representatives will hold leadership elections on Thursday, moving speedily to get a new team in place to deal with a series of fiscal challenges ahead. Canada will have a busy week on the economic front, culminating in Friday's jobs report. The economy is expected to have added 10,000 jobs in September to bring the unemployment rate down to 6.9 percent. Despite a mild recession in the first half of the year and layoffs in the oil patch, the labor market has been relatively resilient. Among other major data next week will be Tuesday's figures of trade balance, which is forecast to have widened to a deficit of C$1.20 billion in August. Attention will be on the export sector on Tuesday, which has seen two months in a row of strong growth and is seen as key to Canada's economic recovery. On Monday, the Mexico central bank releases minutes from its decision last month to keep interest rates on hold at a record low. On Tuesday, the statistics office will release consumer confidence data for September, after the gauge hit a 1-year low in August. Thursday's inflation data will show how the indicator fared in September, after it cooled to a record low in August. ON MONDAY, OCTOBER 5 Markit will release the final Purchasing Managers Index for the services sector in September which slipped to 55.6 in its preliminary reading. (0945/1345) Also, the Institute for Supply Management releases its non-manufacturing index, which is expected to drop to 57.7 in September from 59 in August. (1000/1400) On the verge of the structural overhaul announced in August, Alphabet Inc will replace Google Inc as the publicly traded company after U.S. markets close on Friday. Google's Class A shares and Class C shares will automatically convert into the same number of Alphabet's Class A shares and Class C shares and start trading on the Nasdaq. The ticker symbols will remain the same. The prestigious Nobel Prizes will be awarded next week, beginning with "Physiology or Medicine" on Monday and followed by Physics, Chemistry, Literature and Peace. LIVECHAT - Rates view with Cumberaland Chief Monetary Economist, Bob Eisenbeis Bob Eisenbeis returns to the forum at 1000/1400 to discuss the prospects for an October surprise from the Fed, and compare notes on where monetary policy is headed for emerging and developed economies alike. To join the Global Markets Forum, click here bit.ly/1kTxdKD (All references to a company's results expected to beat or miss analysts average estimates are according to Thomson Reuters StarMine, unless mentioned otherwise) (Compiled By Nayyar Rasheed in Bengaluru; Editing by Maju Samuel)
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